Exercise 23.1.1 Ariskless security with cash flow C1,C2, . . . ,Cn has a market price of

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Exercise 23.1.1 Ariskless security with cash flow C1,C2, . . . ,Cn has a market price of

n i=1 Cid(i ). The discount factor d(i) denotes the PV of $1 at time i from now.

Is the formula still valid if the cash flow depends on interest rates?

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